Reps. Neal, Pascrell Issue Statements on U.S.-EU Insurance Covered Agreement

WASHINGTON, Jan. 13 -- Rep. Richard Neal, D-Mass., ranking Democratic member of the House Ways and Means Committee, issued the following news release:

Ways and Means Committee Ranking Member Richard Neal (D-MA) and Trade Subcommittee Ranking Member Bill Pascrell, Jr. (D-NJ) today released the following statements after the U.S. Department of the Treasury and the Office of the United States Trade Representative (USTR) announced the conclusion of the insurance covered agreement negotiations with the European Union (EU):

"I welcome the hard work of the Obama Administration to reach an agreement in the covered agreement negotiations with the European Union," said Ranking Member Neal. "In the coming 90-day review period, I look forward to closely studying the agreement and consulting with stakeholders to ensure that the agreement successfully addresses EU discrimination against the U.S. insurance and reinsurance industries and achieves the Administration's specified goals."

"In the past, U.S. insurance companies have not been treated fairly by the EU," said Trade Subcommittee Ranking Member Pascrell. "I will examine this agreement closely and confer with stakeholders and regulators in the coming weeks in hopes that it will ensure fairer treatment for insurance companies and the consumers that rely on them."

Background

The Dodd-Frank Wall Street Reform and Consumer Protection Act, which authorizes Treasury and USTR to negotiate covered agreements, requires the agencies to submit an agreement at least 90 days before the agreement enters into force. The 90-day period was intended to provide Congress and interested stakeholders with time to examine the agreement before it enters into force. In announcing the covered agreement negotiations, Treasury and USTR laid out their goals for the negotiations, including "ensur[ing] that U.S. insurers and reinsurers will be permitted to operate in the EU on the same regulatory terms as insurers and reinsurers domiciled in the EU or in jurisdictions deemed equivalent under Solvency II."

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